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Message: Venezula - drought may curtail oil exports

Enough rain is falling in southern Venezuela to just replace the water consumed in power generation. Unless the rains increase markedly, Venezuela‟s main reservoir will not have enough water to get the country through next winter‟s dry season, thereby shutting down 70 percent of the country‟s generating capacity. This possibility is already being discussed openly in the press. One of the Guri dam‟s generators apparently began to vibrate violently last week and was taken out of service after causing significant damage to its concrete supports. Some observers are warning that the hydro dams are being over-worked and that a catastrophic failure of a generator, thereby shutting down the dam completely, is becoming increasingly likely. In the meantime, the loss of yet another hydro-powered generator adds to the country‟s electricity shortage and increases the possibility that oil exports will eventually be affected.

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